SOURCE: Shinesroomonline.com

Shinesroomonline.com

March 02, 2011 07:59 ET

Equity Research on Invesco Agency Securities Inc. and Capstead Mortgage Corp. -- Mortgage Investment Sector Troubled by Potential Rate Hikes

NEW YORK, NY--(Marketwire - March 2, 2011) - www.shinesroomonline.com has a handpicked team of market professionals with over 100 years of combined investing experience. Today they are providing members comprehensive research on the mortgage investment industry and are offering free analytical research on Invesco Agency Securities Inc. (NYSE: IVR) and Capstead Mortgage Corp. (NYSE: CMO). Register with us today at www.shinesroomonline.com to have free access to this research and speak to one of our pros.

After a prolonged period of low interest rates, a potential increase could greatly affect the profitability of the mortgage investment sector. Dividends have been strong for mortgage REIT's like Invesco Agency Securities as a result of a healthy short-term versus long-term rate spread. However, the Federal Reserve may be motivated to increase the short-term interest rates due to growing fears of economic inflation. This would hurt spreads throughout the sector and likely cause many to lower their dividends. Invesco Agency Securities Inc. report is accessible for free by registering today at http://shinesroomonline.com/reports/March0211InvescoMortgageCapitalInc.(IVR)020311.php.  

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One piece of news that could also weigh on the sector's outlook is the Obama administration's proposal to restructure its role in the mortgage financing market. Hoping to shrink the role government sponsored enterprises Fannie Mae and Freddie Mac play in the $11 trillion mortgage market, this could hurt companies within the mortgage REIT industry that are highly leveraged on the fact that their mortgage-backed securities are essentially guaranteed by the government, ultimately adding an increased degree of risk to their business model. Capstead Mortgage Corp. report is accessible for free by registering today at http://shinesroomonline.com/reports/March0211CapsteadMortgageCorp.(CMO)020311.php

Fannie and Freddie currently own or insure around 97% of mortgage bonds. Companies like Capstead Mortgage Corp. have been considering the expansion of their leverage in 2011 thanks to the surety of the current agency-backed market. At the quarter ended Dec. 31st, Capstead had a portfolio leverage of 6.91 time long-term investment capital. Visit www.shinesroomonline.com to see how companies in this industry have grown over the past years and how they are expected to perform in the future.

The two mortgage investment stocks research reports are available for free by signing up now on www.shinesroomonline.com.

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